I used those words last time I addressed you here in New York. It was in 2004, which was 11 years ago, and even more importantly: one major crisis ago! On that occasion, I spoke in my capacity as the chairman of the Basel Committee on Banking Supervision. I am tempted to ask: how many of you were there? Rich Apostolik, you were there!
At that time, I highlighted the progress and the importance of risk management, trying to convince you that we regulators were on the same side as you risk managers. At that time, regulation was evolving to become more risk-sensitive and to encourage better risk management. Eleven years on, we have all learned a lot more about risks: counterparty risks, liquidity risks – and most importantly, we have learned how difficult it is to identify, to measure and to internalise systemic risks.
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